Half Year 2026 Master Drilling Group Ltd Earnings Call

August 25, 2026

Speaker #1: What you're watching is the 40th anniversary of the company, and really a remarkable achievement and a milestone in the history of the company. And to this end, just to all our shareholders and all the investors, all our clients, and all the employees who supported the company: thanks for the 40 years of support, and we really hope that the 40 years ahead that we're going to be embarked on at you guys will be part of this journey.

Speaker #1: So thanks again from me and management for the past 40 years, and looking forward to the next 40 years. Just joining me today as usual is Roelof and Andr.

Speaker #1: Roelof will give us a high-level overview of your operations for the period under review, and Andr as usual has got the bragging rights and he will share with us the financials for the period under review.

Speaker #1: All the high-level just touched on the business, and maybe the market on a high level, and then on a next level down, share with you the way we're going to set up the business to be part of this journey and maybe of this value chain going forward with this ever-changing industry.

Speaker #1: Before we look at the 40 years ahead, I think it's probably important to take a step back and maybe reflect on the past 40 years, what we saw through our lens the past 40 years, in the industry, and maybe separate the open cost mining and open pit miners from the underground miners.

Speaker #1: And unlike the open pit mining, which I really think raised the bar the past 40 years, we didn't see the same in the underground space.

Speaker #1: Probably more of the same in the underground mining space, and important at least our view, the way we think mining will change in the underground space.

Speaker #1: And for one, I do believe that the actual model of mining will have to change. I think this is overdue, and yes, the reason why was more of the same, probably a function of lack of investment, maybe the winters much longer in the summers in the commodity space, and this goes on.

Speaker #1: But back to the point, I think important at least from where we're sitting is that the model will have to change, the way mines operate will have to change, and it starts off with mine design.

Speaker #1: You. Yes. The reason why it was more of the same—probably a function of lack of investment. Maybe the window is much longer in the summers in the commodity space.

Danie Pretorius: You. The reason why it was more of the same, probably a function of lack of investment. Maybe the winter is much longer than the summers in the commodity space, and the list goes on. Back to the point I think important, at least from where we are sitting, is that the model will have to change. The way mines operate will have to change. It starts off with mine design. Our belief, we believe that the way mines are going to be designed as we speak going forward will have to change. The way mines will be operating and will be operated going forward will have to change. The way decision-making was done and is going to be done going forward will have to change.

Speaker #1: Our belief, we believe that the way mines are going to be designed as we speak going forward will have to change, the way mines will be operating and will be operated going forward will have to change, the way decision-making was done and is going to be done going forward will have to change.

Speaker #1: And the list goes on, but back to the point: I think the important thing—at least from where we sit—is that the model will have to change.

Speaker #1: The way mines operate will have to change, and it starts off with mine design. Our belief is that the way mines are going to be designed, as we speak going forward, will have to change.

Speaker #1: And hence the reason why I believe we took a step back and we need to refocus and maybe get alignment on our strategy with this ever-changing industry.

Speaker #1: The way mines will be operating and will be operated going forward will have to change. The way decision-making was done, and is going to be done going forward, will have to change.

Speaker #1: Looking ahead then, we think fundamental is going to be one, the so-called decision-making will have to change, speed will be probably top of mind amongst others, so the mining going ahead and the so-called changes that we believe is going to play out, we've put them in four boxes amongst others.

Speaker #1: And hence the reason why I believe we took a step back, and we need to refocus and maybe get alignment on our strategy with our ever-changing industry.

Danie Pretorius: Here is the reason why I believe we took a step back, and we need to refocus and maybe get alignment on our strategy with this ever-changing industry. Looking ahead, we think fundamental is going to be, one, the so-called decision making will have to change. Speed will be probably top of mind amongst others. The mining going ahead and the so-called changes that we believe is going to play out, we have put them in four boxes, amongst others, which we believe should be incorporated in our strategy going forward. Top of mind is always safety, and I think what we have done in the past decade, decades, probably confirms where the industry is going to. Technology is going to be probably top of mind, again, dealing with robotics, automation, intelligent systems, getting those people out of the fire line from those high hazard environments.

Speaker #1: We're looking ahead, then. We think fundamental change is going to be one: the so-called decision-making will have to change. Speed will probably be top of mind, among other things.

Speaker #1: Which we believe should be incorporated in our strategy going forward. Top of mind is always safety, and I think what we've done the past decade to decades probably confirms where the industry is going to.

Speaker #1: So, with the mining going ahead and the so-called changes that we believe are going to play out, we've put them in four boxes, amongst others.

Speaker #1: Technology is going to be probably top of mind again, dealing with robotics, automation, intelligent systems, getting those people out of the fire line, from those high-hazard environments, maybe share with you guys where we are today with our autonomous rigs we today, as we speak, are basically commissioning one of the first autonomous racehorse ever dropped.

Speaker #1: These are points we believe should be incorporated into our strategy going forward. Top of mind is always safety, and I think what we've done over the past decade, or decades, probably confirms where the industry is going.

Speaker #1: Technology is going to be, probably, top of mind again—dealing with robotics, automation, intelligent systems—getting those people out of the firing line, away from those high-hazard environments.

Speaker #1: Just to confirm, our focus and what we're doing in the tech space to try and remove people from the actual operations. The second one which I've alluded to earlier on is the so-called speed to the ore bodies.

Speaker #1: Maybe I'll share with you where we are today with our autonomous rigs. Today, as we speak, we are basically commissioning one of the first autonomous raise bores ever.

Danie Pretorius: Maybe share with you guys where we are today with our autonomous rigs. We today, as we speak, are basically commissioning one of the first autonomous raise bores ever drilled, just to confirm our focus and what we are doing in the tech space to try and remove people from the actual operations. The second one, which I have alluded to earlier on, is the so-called speed to the ore bodies. You guys tracking and following the commodities would probably have noticed that just from the early 1990s to where we are today, copper grade is pretty much half. Today, copper grade, if you measure from the early 1990s to where we are today, is probably down 50%, which means more waste mining. An issue that we have picked up in the industry for the past decade, decades, is access to ore bodies.

Speaker #1: You guys tracking and following the commodities would probably notice, have noticed, that just from the early 90s to where we are today, copper grate is pretty much half, so today copper grate, if you measure from the early 90s to where we are today, is probably down 50%, which means more waste mining.

Speaker #1: North. Just to confirm, our focus and what we're doing in the tech space is to try and move people from manual operations. The second point, which I've alluded to earlier on, is the so-called speed to the ore bodies.

Speaker #1: You guys tracking and following the commodities would probably notice, have noticed, that just from the early '90s to where we are today, copper grade is pretty much half.

Speaker #1: And the issue that we've picked up in the industry for the past decade, decades, is access to ore bodies. Obviously we've been talking about speed to ore bodies, NPV, net present value comes to mind, and maybe on that, two or three initiatives that we've embarked on, which is key to our strategy going forward.

Speaker #1: So today, copper grade, if you measure from the early '90s to where we are today, is probably down 50%, which means more waste mining.

Speaker #1: And the issue that we've picked up in the industry for the past decade, or decades, is access to ore bodies. Obviously, we talked about speed to ore bodies and NPV—net present value comes to mind. And maybe on that, two or three initiatives that we've embarked on, which are key to our strategy going forward.

Speaker #1: One, the shaft boring system, and probably on that, two things important to take from the call, and we can probably later on take some more questions on that.

Danie Pretorius: Obviously, when we talk about speed to ore bodies, NPV, net present value, comes to mind. Maybe on that, two or three initiatives that we have embarked on, which is key to our strategy going forward. One, the Shaft Boring System, and probably on that, two things important to take from the call and we can probably later on take some more questions on that. We today have access for the first time to a Shaft Boring System to do mechanical boring to the likes of about 9, 10 meters, which is available probably in the next year for delivery, which I really believe can probably triple the shaft conventional production. Instead of waiting for two, three, four, five years to get a shaft down to 1,000 meters, we can probably do that in a third of the time.

Speaker #1: We today have access for the first time to a shaft boring system to do mechanical boring to the likes of about 9, 10 meters, which is available probably in the next year for delivery.

Speaker #1: First, the shaft boring system. And probably on that, two important things to take from the call. We can probably take some more questions on that later on.

Speaker #1: Which I really believe can probably triple the shaft conventional production so instead of waiting for two, three, four, five years to get a shaft down to 1,000 meters, we can probably do that in a third of the time.

Speaker #1: Today, I have access for the first time to a shaft boring system to do mechanical boring to the likes of about 9 to 10 meters, which is available probably in the next year for delivery.

Speaker #1: Which obviously will justify a number of those projects that back in the day failed this hurdle: NPV hurdle, which today is key for some commodities like copper, just to name one example.

Speaker #1: Which I really believe can probably triple the shaft conventional production, instead of waiting for two, three, four, or five years to get a shaft down to 1,000 meters.

Speaker #1: We can probably do that in a third of the time, which obviously will justify a number of those projects that, back in the day, failed this hurdle—in PV hurdle—which today is key for some commodities like copper, just to name one example.

Speaker #1: The second one, which I think we've shared with the market last time around, was the shaft boring system that we've developed in-house. That system is about to be rolled out into commission the 1st of next year, and we will give you guys feedback as we go along with the local system.

Danie Pretorius: Which obviously will justify a number of those projects that back in the day failed this hurdle, NPV hurdle, which today is key for some commodities like copper, just to name one example. The second one, which I think we've shared with the market last time around, was the Shaft Boring System that we've developed in-house. That system is about to be rolled out and commissioned the H1 next year, and we will give you guys feedback as we go along with the local system. It's like a 5-meter machine which we developed, and we will give you feedback on that in the early 2027s. The one that you guys have been following for the past five, six, seven years is the Mobile Tunnel Borer.

Speaker #1: The second one, which I think we've shared with the market last time around, was the shaft boring system that we've developed in-house. That system is about to be rolled out into commission in the first half of next year, and we will give you guys feedback as we go along with the local system.

Speaker #1: It's about 5 meter machine which we developed, and we will give you feedback on that in the early 2027s. And then the one that you guys have been following for the past 5, 6, 7 years is the mobile tunnel borer, and please do give feedback that this machine is now getting very close to the actual performance KPI which was back in the day an issue for the business.

Speaker #1: It's about the 5-meter machine we developed, and we will give you feedback on that in early 2027. And then the one that you guys have been following for the past five, six, seven years is the mobile tunnel borer, and please do give feedback that this machine is now getting very close to the actual performance KPI, which was, back in the day, an issue for the business.

Speaker #1: We really think that in the next 6 months we should probably, with a better luck, even exceed this production KPI that we agreed with the miners.

Speaker #1: So good progress on that, and we will give you guys informed as we go along. I think the whole industry today is been watching this as part of the so-called mining model that I alluded to earlier on.

Danie Pretorius: Pleased to give feedback that this machine is now getting very close to the actual performance KPI, which was back in the day an issue for the business. We really think that in the next six months, we should probably, with a better luck, even exceed this production KPI that we agreed with the miners. So good progress on that, and we will give you guys informed as we go along. I think the whole industry today has been watching this as part of the so-called mining model that I alluded to earlier on. This, I think, is one of those tools which I believe the miners will probably incorporate in new mine designs. The next one is probably one of the more important issues, maybe risks facing mining dilution.

Speaker #1: We really think that in the next six months we should probably, with a bit of better luck, even exceed this production KPI that we agreed with the miners.

Speaker #1: So, good progress on that, and we will keep you guys informed as we go along. I think the whole industry today has been watching this as part of the so-called mining model that I alluded to earlier on.

Speaker #1: This, I think, is one of those tools which I believe the miners will probably incorporate in new mine designs. The next one is probably the one of the more important issues maybe risks facing mining dilution.

Speaker #1: This, I think, is one of those tools which I believe the miners will probably incorporate in new mine designs. The next one is probably one of the more important issues—maybe risks—facing mining: dilution.

Speaker #1: Again, what I alluded earlier on, copper as an example, where great is pretty much half of what was back in the early 90s. This is something where the miners really focus on today.

Speaker #1: Again, what I alluded to earlier on: copper as an example, where grade is pretty much half of what it was back in the early '90s.

Speaker #1: So I think the part of our game plan strategy is this reef cutter, which has been commissioned as we speak at Peconi Mine, and no need to elaborate on that.

Speaker #1: This is something where the miners really focus on today. So, I think part of our game plan strategy is this reef cutter, which is being commissioned as we speak at the Coney Mine, and no need to elaborate on that.

Danie Pretorius: Again, what I alluded earlier on, copper as an example, where grade is pretty much half of what it was back in the early 1990s. This is something where the miners really focus on today. So I think the part of our game plan strategy is this ReefCutter, which has been commissioned as we speak at the Bokoni mine, and no need to elaborate on that. I think in Om's presentation, Om already shared some of the outcomes of that, and we're very excited to see that this, in the next 6 months, 12 months, will tick some of those KPI. Although it's still in development phase, I really think dilution and the way we're going to set up our business to try and help the miners to develop certain technologies to deal with dilution is going to be critical for the industry as well as for our business.

Speaker #1: I think in the on presentation, I'm already shared some of the outcomes of that, and we're very excited to see that this in the next 6 months, 12 months, will take some of those KPIs.

Speaker #1: I think in the presentation, we already shared some of the outcomes of that, and we're very excited to see that in the next 6 months, 12 months, we will take some of those KPIs.

Speaker #1: Although it's still in development phase, I really think dilution and the way we're going to set up our business to try and help the miners to develop certain technologies to deal with dilution is going to be critical for the industry as well as for our business.

Speaker #1: Although it's still in the development phase, I really think dilution and the way we're going to set up our business to try and help the miners to develop certain technologies to deal with dilution is going to be critical for the industry as well as for our business.

Speaker #1: And then obviously the last one is AI. Data intelligent mining. And this, I think, is not only part of our business, I think the penny has dropped with the industry.

Speaker #1: And then, obviously, the last one is AI—data intelligence mining. And this, I think, is not only part of our business; I think the penny has dropped with the industry.

Speaker #1: To make sure that the way decision making is being taken as we speak and going forward is going to be critical. And even in our little business, this is one of the so-called building blocks that we've incorporated to make sure we focus more on prediction than to be reactive.

Danie Pretorius: The last one is AI data intelligent mining. This, I think, is not only part of our business, I think the penny has dropped with the industry to make sure that the way decision-making is being taken as we speak and going forward is going to be critical. Even in our little business, this is one of the so-called building blocks that we've incorporated to make sure we focus more on prediction than to be reactive. I think what we've seen in the business, in the industry today, the key word here was reactive, and I think this will have to change to be more predictive. So in summary then, if you look at the industry, the industry is changing. Again, the so-called model which I've alluded to, I really think this will start off again with mining.

Speaker #1: To make sure that the way decision-making is being taken, as we speak and going forward, is going to be critical. Even in our little business, this is one of the so-called building blocks that we've incorporated to make sure we focus more on prediction than to be reactive.

Speaker #1: And I think what we've seen in the business, in the industry today, the keyword here was reactive, and I think this will have to change to be more predictive.

Speaker #1: And I think what we've seen in the business, in the industry today, is that the keyword here was 'reactive.' I think this will have to change to be more predictive.

Speaker #1: So sorry for the interruption, and if I repeat myself, apologies for that. Just maybe a step back, then again, the way we're going to set up our business and part of our strategy to be aligned with this ever-changing industry, which I've alluded to earlier on, safety again, top of mind, speed to ore bodies, I think we've covered that, dilution of ore, I think we've covered that, critical and part of our strategy going forward.

Speaker #1: So, in summary then, if you look at the industry, the other industry is changing, and again, the so-called model which I've alluded to—I really think this will start off again with mining.

Speaker #1: And AI and the so-called data intelligence, and to be to avoid this reactive discussion we had back in the day, and even today, and going forward to have more a predictive discussion key to our business and to the industry.

Danie Pretorius: Building blocks for us to incorporate that in our business. I have just made mention of the four. Roelof, over to you. Part of you. So sorry for the interruption, and if I repeat myself, apologies for that. Just maybe a step back then again, the way we are going to set up our business and part of our strategy to be aligned with this ever-changing industry, which I have alluded to earlier on. Safety, again, top of mind. Speed to ore bodies, I think we have covered that. Dilution of ore, I think we have covered that. Critical and part of our strategy going forward and AI and the so-called data intelligence, and to avoid this reactive discussion we had back in the day and even today, and going forward, to have more a predictive discussion, key to our business and to the industry. Roelof, over to you.

Speaker #1: Thank you. So sorry for the interruption. And if I repeat myself, apologies for that. Just maybe I'll step back. The way we're going to set up our business, and part of our strategy to be aligned with this ever-changing industry—which I've alluded to earlier on—safety is again top of mind. Speed to our bodies, I think we've covered that. Dilution of ore, I think we've covered that. These are critical and part of our strategy going forward.

Speaker #1: Roelf, over to you.

Speaker #2: Thank you, Dani, and good morning to everyone joining us this morning. I hope everybody enjoyed the quick ad break there. As always, a big thank you to all our employees.

Speaker #2: For the work and effort that you've put in for the first 6 months of 2026. A record revenue for the interim period is a real team achievement, and well done to everyone that contributed to that.

Speaker #2: In our operational review today, we'll share with you some key insights into our business. As always, we'll start off with our safety and people performance, share with you those agendas.

Speaker #2: We'll take you through the different regions and share with you some key insights we'll have a look at our utilization arbor, and finally, we'll have a look at our record order book and pipeline.

Speaker #2: But more on that a little bit later. Let's start off with our safety performance, safety always comes first. I'm pleased to report that our safety performance have improved significantly since 2025.

Speaker #2: For the first half of 2026, at the end of June, our last time injury frequency came in at 0.95, which is a significant improvement from the 1.55 that we reported at the end of last year.

Speaker #2: Technology for us is still key to further improving this safety performance. If you look at our technology agenda or strategy, which really talks to removing people out of harm's way, automation, remote drilling, removing people out of harm's way, removing people from harsh underground conditions, we believe this is key to sustainably increase and improve our safety performance.

Speaker #2: Our safety performance is still above our internal threshold levels, and we are committed to improve that come the second half of this year. Let's move on to our people.

Speaker #2: Our people is the cornerstone of our business, and I'm pleased to report that we're making solid progress with our people agenda. If I can share with you some numbers, first of all, our workforce our workforce is sitting at 3,300 people as of June this year.

Speaker #2: Which is up from just under 3,000 that we reported at the same time last year. The growth in employees, majority of that came from South Africa, and also a part of that from South America.

Speaker #2: Investment into training always an important number for us to look at. That's slightly up to 1.45 million dollars. And investment into training goes into three areas.

Speaker #2: First of all, investment into leadership programs. Secondly, technical training, because we're a technical business. And then finally, there's a number of apprenticeship programs across the group, which is part of our training program.

Speaker #2: Local employment, an important number to look at. That's always 97, 98 percent. And we genuinely committed to working with our local communities and clients to make sure that we empower the communities where we work in, not just here in South Africa, but globally where we work.

Speaker #2: Doesn't matter what continent. We're also trying to limit the amount of expats we send out across the world. Gender diversity, sitting at 20 percent.

Speaker #2: And then definitely abled employees. This is a number that we're proud of, sitting at 3.89 percent, which is an industry best. Looking at all those indicators, on the screen, I really think this underpins the business and our people agenda.

Speaker #2: And what's really fundamental for us is our values of the organization. Respect, accountability, innovation, safety, and efficiency. Let's have a look at the business.

Speaker #2: Our revenue contributions by business pillar. For the first 6 months of 2026, clearly evident, you can see race boring and it support service is still the biggest contributor.

Speaker #2: And biggest revenue source for us. Although in dollar terms, the race boring and support services pillar have grown, the overall contribution to the group is lower from 84 to 78 percent.

Speaker #2: In terms of our strategy, there's a clear shift in terms of our revenue generation. Moving towards some of these newer pillars, that we brought on board the last couple of years.

Speaker #2: Digital digitalization and smart mining, we've increased that from 11 to 13 percent. We've seen a good contribution from our A&R business. For the first 6 months, which resulted in that increase.

Speaker #2: Then on the slim drilling business, pushing that up from 2 percent to 4 percent. And quite a milestone that was achieved at the beginning of the year, with our MDX business that were able to expand outside of the borders of South Africa, but more on that a little bit later.

Speaker #2: Then on mechanical rock excavation and cutting, as expected, we increased this pillar from 3 percent to 5 percent for the first 6 months. As Danny alluded to earlier, this is based on the MTB that we were able to successfully deploy at ARM and production is increasing.

Speaker #2: And we believe in the future, this division will significantly more contribute to the overall revenue stream of the group. Let's have a look at each one of these pillars.

Speaker #2: And let me share with you some insights or on that technology roadmap. First of all, race boring and its support services. Race boring is still the core of our business, and we believe it will be for the next couple of years.

Speaker #2: We also believe with mines going deeper, geologically geological challenges that we experiencing, and also issues regarding workforce, labor time, workforce efficiency underground, these challenges is huge for the industry.

Speaker #2: And I really believe with the progress that we're making with our remote drilling, autonomous drilling, which Danny alluded to earlier, these initiatives with significantly improve and drive value for our clients in this area.

Speaker #1: And AI and the so-called data intelligence, and to avoid this reactive discussion we had back in the day and even today, and going forward, to have more of a predictive discussion key to our business and to the industry.

Speaker #2: I also need to share with you some world records that we achieved on the race boring site. At the end of last year, we communicated that we drilled the world record race boring shaft here in South Africa.

Speaker #1: Rough, over to you.

Speaker #2: Just under 1.4 kilometers deep. At that stage, that was the longest race boring race boring shaft that was ever drilled. Now this year, we've piloted, I think it's a 1,542 or 41 meter shaft, that we've completed successfully.

Speaker #2: I'll say. Thank you, Donnie. And good morning to everyone joining us this morning. I hope everybody enjoyed the quick ad break there. As always, a big thank you to all our employees for the work and effort that you've put in for the first six months of 2026.

Speaker #2: The first phase, which is a piloting. Which is a new world record. And that shaft is busy being reamed and will be completed in 2027.

Roelof Swanepoel: Assegaai. Thank you, Danie, and good morning to everyone joining us this morning. I hope everybody enjoyed the quick ad break there. As always, a big thank you to all our employees for the work and effort that you have put in for the first 6 months of 2026. A record revenue for the interim period is a real team achievement, and well done to everyone that contributed to that. In our operational review today, we will share with you some key insights into our business. As always, we will start off with our safety and people performance, share with you those agendas. We will take you through the different regions, share with you some key insights. We will have a look at our utilization ARPU, and finally, we will have a look at our record order book and pipeline, but more on that a little bit later. Let us start off with our safety performance.

Speaker #2: A record revenue for the interim period is a real chief achievement—a team achievement. And well done to everyone that contributed to that. In our operational review today, we'll share with you some key insights into our business.

Speaker #2: And once completed, that will be another world record. On autonomous drilling, as Danny mentioned, our autonomous drilling program is getting good traction, and we're very proud of the first machine that's out in the field being tested.

Speaker #2: As always, we'll start off with our safety and people performance and share with you those agendas. We'll take you through the different regions and share with you some key insights. We'll have a look at our utilization, ARPOR, and finally, we'll have a look at our record order book and pipeline.

Speaker #2: And as that machine is tested, we'll share with you the updates. Then on our next generation machines, our BlueBot this is one of its kind, blind hole machine that we developed specifically for Chile.

Speaker #2: But more on that in a little bit.

Speaker #1: Later Let's start off with our safety , performance , safety always comes first . I'm pleased to report that our safety performance has improved significantly since 2025 .

Speaker #2: That's South American market. And this was also the first remotely operated blind hole machine in the world. We've partnered with our clients in Chile, to get this machine operational.

Speaker #2: And the initial results is really, really good. That machine focuses on three things, safety, removing people from the machine itself, mobility, easy to move around, and then finally, efficiencies.

Speaker #1: For the first half of 2026, at the end of June, our lost time injury frequency came in at 0.95, which is a significant improvement from the 1.55 that we reported at the end of last year. Technology for us is still key to further improving this safety performance.

Roelof Swanepoel: Safety always comes first. I am pleased to report that our safety performance has improved significantly since 2025. For the H1 of 2026, at the end of June, our lost time injury frequency came in at 0.95, which is a significant improvement from the 1.55 that we reported at the end of last year. Technology, for us, is still key to further improving this safety performance. If you look at our technology agenda or strategy, which really talks to removing people out of harm's way, automation, remote drilling, removing people out of harm's way, removing people from harsh underground conditions, we believe this is key to sustainably increase and improve our safety performance. Our safety performance is still above our internal threshold levels, and we are committed to improve that come the H2 of this year. Let us move on to our people.

Speaker #2: Let's have a look at our digitalization and smart mining division. So the biggest contributor to revenue and to the technology strategy here is the A&R investment that we've made.

Speaker #1: If you look at our technology agenda strategy , which really talks to moving people out of harm's way , automation , remote drilling , removing people out of harm's way , removing people from harsh underground conditions , we believe this is key to sustainably increase and improve our safety performance , our safety performance is still above our internal threshold levels , and we are committed to improve that Come the second half of this year , let's move on to our people .

Speaker #2: Three key highlights in the technology roadmap. First of all, the AI powered cameras. We've seen significant progress the last 6 months with these initiatives.

Speaker #2: So these are AI models that's been put on the local devices on the vehicles. Which detects hazards, obstacles, and people. And then this device, then communicates with the vehicle to take corrective action to prevent incidents.

Speaker #1: Our people is the cornerstone of our business , and I'm pleased to report that we're making solid progress with our people agenda If I can share with you some numbers , first of all , our workforce , our workforce is sitting at 3300 people as of June this year , which is up from just under 3000 that we reported .

Speaker #2: We really believe this technology can make a huge impact in the safety here in South Africa for underground miners. A huge challenge that the underground miners specifically the gold miners in South Africa is struggling with, is this last mile of communication.

Speaker #2: Getting communication or getting connectivity into these work faces. And that's been a challenge for many, many years. A&R together with EIQ came up with a solution proprietary network infrastructure model that is being installed in that last mile of that last mile of communication, to really get communication and internet connectivity to these faces.

Roelof Swanepoel: Our people is the cornerstone of our business, and I am pleased to report that we are making solid progress with our people agenda. If I can share with you some numbers, first of all, our workforce. Our workforce is sitting at 3,300 people, as of June this year, which is up from just under 3,000 that we reported at the same time last year. The growth in employees, a majority of that came from South Africa and also a part of that from South America. Investment into training, always an important number for us to look at. That is slightly up to $1.45 million. Investment into training goes into three areas. First of all, investment into leadership programs. Secondly, technical training, because we are a technical business. Then finally, there is a number of apprenticeship programs across the group, which is part of our training program.

Speaker #1: At the same time last year, the growth in employees—a majority of that came from South Africa, and also a part of that from South America. Investment into training is always an important number for us to look at. That's slightly up to $1.45 million.

Speaker #1: And investment into training goes into three areas . First of all , investment into leadership programs . Secondly , technical training , because we are a technical business .

Speaker #2: We've already tested this at a number of mines here in South Africa. And we believe this can bring a lot of value to our clients.

Speaker #2: On missing person locator, we previously communicated on this. This is really very important device. To locate people underground and to know where people are at all time in an underground operations.

Speaker #1: And then finally, there are a number of apprenticeship programs across the group, which are part of our training program. Local employment is an important number to look at.

Speaker #1: That's always 97 . 98% . And we genuinely committed to working with our local communities and clients to make sure that we empower the communities where we work in , not just here in South Africa , but globally , where we work doesn't matter what continent .

Speaker #2: This technology is now being commercialized, and being implemented in a number of mines here in South Africa. And again, this technology directly talks to safety and we believe there's a huge efficiency upside in the future for underground miners.

Roelof Swanepoel: Local employment, an important number to look at. That's always 97%, 98%. We're genuinely committed to working with our local communities and clients to make sure that we empower the communities where we work in, not just here in South Africa, but globally where we work. It doesn't matter what continent. We also try and limit the amount of expats we send out across the world. Gender diversity is sitting at 20%, then definitely-abled employees. This is a number that we're proud of, sitting at 3.89%, which is an industry best. Looking at all those indicators on the screen, I really think this underpins the business and our people agenda. What's really fundamental for us is our values of the organization: respect, accountability, innovation, safety, and efficiency. Let's have a look at the business. Our revenue contributions by business pillar for the first 6 months of 2026.

Speaker #1: We also try and limit the amount of expats we send out across the world. Gender diversity is sitting at 20%, and then differently abled employees.

Speaker #2: On the slim drilling side, the slim drilling strategy really talks to two legs. First of all, it's about geographical growth or growth in the MDX and all core business.

Speaker #1: This is a number that we're proud of , sitting at 3.89% , which is an industry best Looking at all those indicators on the screen , I really think that's underpins the the business and our people agenda .

Speaker #2: And as we previously mentioned, we were able to expand the MDX business outside of South Africa. So let's see how it goes the next 6 months.

Speaker #1: And what's really fundamental for us is our values of the organisation . Respect , accountability , innovation , safety and efficiency Let's have a look at the business Our revenue contributions by business pillar .

Speaker #2: And we will definitely make sure and support the teams to get going outside of South Africa. Then on the technology roadmap, on the desert elephant and the dragonfly machine, these machines is in their development roadmap.

Speaker #1: For the first six months of 2026, it is clearly evident—you can see raise boring and IT support services are still the biggest contributor and the biggest revenue source for us.

Speaker #2: Dragonfly already operational. And these machines bring three things together, which is automation, automated rod handling, and then electrification. And the whole purpose and objective of these machines is to get better information to our clients, to assist them for faster decision making on where to explore and where to mine in the future.

Speaker #1: Although in dollar terms, the raise boring and support services pillar have grown, overall contribution to the group is lower, from 84% to 78%.

Speaker #1: In terms of our strategy, there's a clear shift in our revenue generation, moving towards some of these newer pillars that we've brought on board over the last couple of years.

Roelof Swanepoel: Clearly evident, you can see raise boring and its support services still the biggest contributor and biggest revenue source for us. Although in USD terms, the raise boring and support services pillar have grown, the overall contribution to the group is lower from 84% to 78%. In terms of our strategy, there's a clear shift in terms of our revenue generation, moving towards some of these newer pillars that we brought on board the last couple of years. Digital, digitalization, and smart mining, we've increased that from 11% to 13%. We've seen a good contribution from our A&R business for the first 6 months, which resulted in that increase. Then on the slim drilling business, pushing that up from 2% to 4%.

Speaker #1: Digital digitalisation and smart mining . We've increased that from 11 to 13% . We've seen a good contribution from our A&R business for the first six months , which resulted in that increase .

Speaker #2: Let's look at the last pillar, which is mechanical rock excavation and cutting. As Danny mentioned earlier, this is a really exciting pillar for us.

Speaker #2: And a lot of investment over the years have went into this division. First of all, on our strategy here, our strategy is very, very clear here.

Speaker #1: Then on the slim drilling business , pushing that up from 2% to 4% , and quite a milestone that was achieved at the beginning of the year with our MDX business that we were able to expand outside of the borders of South Africa , but more on that a little bit later .

Speaker #2: We want to put the building blocks of the technology together for miners to develop and build underground infrastructure quicker and safer. And we specifically focusing on two things, which is tunnels and shafts, really access, and then finally extraction which is the reef cutter which we'll speak to a little bit later on.

Speaker #1: Then on mechanical rock excavation and cutting as expected , we increased this pillar from 3% to 5% for the first six months . As Dani alluded to earlier , this is based on the eMTB that we were able to successfully deploy at ARM and production is increasing , and we believe in the future .

Roelof Swanepoel: Quite a milestone that was achieved at the beginning of the year with our MDX business that we're able to expand outside of the borders of South Africa, but more on that a little bit later. Then on mechanical rock excavation and cutting, as expected, we increased this pillar from 3% to 5% for the first 6 months. As Danie alluded to earlier, this is based on the MTB that we were able to successfully deploy at OM, and production is increasing, and we believe in the future, this division will significantly more contribute to the overall revenue stream of the group. Let's have a look at each one of these pillars, and let me share with you some insights on that technology roadmap. First of all, raise boring and its support services.

Speaker #2: On mechanical tunneling, as Danny mentioned earlier, the MTB well on its way on the ARM project. And we can also report that globally the demand for mechanical cutting or mechanical tunneling within mining projects is increasing.

Speaker #1: This division will contribute significantly more to the overall revenue stream of the group. Let's have a look at each one of these pillars, and let me share with you some insights on that technology roadmap.

Speaker #2: And that is globally. And we're very excited about that in the future. On mechanical shaft drilling, a lot of development have happened. The last 6 months, we believe the SBS that we've developed internally, that machine we positive to and motivated to put that on a project within the next year or two.

Speaker #1: First of all , race boring and its support services race boring is still the core of our business and we believe it will be for the next couple of years We also believe with mines going deeper geologically , geologically , geological challenges that we experiencing and also issues regarding workforce , labour , time , workforce efficiency , underground .

Speaker #2: And as Danny alluded to, having access to technology to drill a shaft blind at 9 meters, this can really be a game changer for the industry and really something that the industry needs.

Roelof Swanepoel: Raise boring is still the core of our business, and we believe it will be for the next couple of years. We also believe with mines going deeper, geological challenges that we're experiencing, and also issues regarding workforce, labor time, workforce efficiency underground. These challenges are huge for the industry. I really believe with the progress that we're making with our remote drilling, autonomous drilling, which Danie alluded to earlier, these initiatives will significantly improve and drive value for our clients in this area. I also need to share with you some world records that we achieved on the raise boring side. At the end of last year, we communicated that we drilled the world record raise boring shaft here in South Africa, just under 1.4 kilometers deep. At that stage, that was the longest raise boring shaft that was ever drilled.

Speaker #1: These challenges are huge for the industry. And I really believe, with the progress that we're making with our remote drilling and autonomous drilling, which Dani alluded to earlier, these initiatives will significantly improve and drive value for our clients in this area. I also need to share with you some world records that we achieved on the raise boring site at the end of last year.

Speaker #2: On the non-explosive mining, reef cutting, very good news. The technology is now being deployed in a tunnel, in a project, and excavating. So more on that in further presentations.

Speaker #2: On our geographic revenue diversification, the group grew its top line revenue to 155.8 million dollars. This is about 17% up from the same time in 2025.

Speaker #1: We communicated that we dropped a world record race boring shaft here in South Africa, just under 1.4 km deep at that stage.

Speaker #1: That was the longest race boring race , boring shaft that was ever drilled Now , this year we piloted , I think it's a 1542 or 41 metre shaft that we've completed successfully .

Speaker #2: The growth really came across the board. Each region have seen some growth. On the margin side, it's been a bit of a mixed bag.

Speaker #2: But we'll unpack that as we go through the different regions. First of all, Central and North America. Slight growth coming from that region, generating in dollars 11.3 million dollars.

Speaker #1: The first phase , which is a piloting , which is a new world record , and that shaft is busy being reamed and will be completed in 2027 .

Speaker #1: And once completed, that will be another world record on autonomous drilling. As Dani mentioned, our autonomous drilling program is gaining good traction, and we're very proud of the first machine that's out in the field being tested—and that is being tested.

Speaker #2: Revenue contribution slightly down to 7%. This region focused on three things for the first 6 months, which was on consolidation, consolidating some of those business units.

Roelof Swanepoel: Now, this year, we have piloted, I think it is a 1,542 or 41 meter shaft that we have completed successfully. The first phase, which is a piloting, which is a new world record, and that shaft is busy being reamed and will be completed in 2027. Once completed, that will be another world record. On autonomous drilling, as Danie mentioned, our autonomous drilling program is getting good traction, and we are very proud of the first machine that is out in the field being tested. As that machine is tested, we will share with you the updates. On our next generation machines, our Bluebot. This is one of its kind, a blind hole machine that were developed specifically for Chile, that South American market. This was also the first remotely operated blind hole machine in the world.

Speaker #2: Secondly, getting the commercial discipline right. And then thirdly, to look at our fleet, review that, and get that ready for the order book that needs to be executed for the next 18 months.

Speaker #1: We'll share with you the updates then on our next generation machines , our blue bot , this is one of its kind blind hole machine that were developed specifically for Chile and South American market .

Speaker #2: Unfortunately, we came in in a break even level for the first 6 months, and this was really caused by client delays and extensions of some of the projects that we have.

Speaker #1: And this was also the first remotely operated blind machine in the world. We partnered with our clients in Chile to get this machine operational, and the initial results are really, really good.

Speaker #2: An additional gaps in the schedule. Good news from the regions that we were able to deploy remote operating or remote drilling systems in Canada and Gary and the team already have seen huge advantage of implementing this technology in that region with huge efficiency upsides.

Speaker #1: That machine focuses on three things safety , removing people from the machine itself , mobility , easy to move around , and then finally , efficiencies Let's have a look at our digitalization and smart mining division .

Speaker #2: Talking to South America, slight growth coming from South America. Increasing the revenue to 44.3 million dollars. Contribution in revenue dropped to 28%. The good news is a number of bigger machines is within that region.

Roelof Swanepoel: We have partnered with our clients in Chile to get this machine operational, and the initial results is really, really good. That machine focuses on three things: safety, removing people from the machine itself; mobility, easy to move around; and finally, efficiencies. Let us have a look at our digitalization and smart mining division. The biggest contributor to revenue and to the technology strategy here is the A&R investment that we have made. Three key highlights in the technology roadmap. First of all, the AI-powered cameras. We have seen significant progress the last six months with these initiatives. These are AI models that has been put on the local devices on the vehicles, which detects hazards, obstacles, and people. This device then communicates with the vehicle to take corrective action to prevent incidents.

Speaker #1: So the biggest contributor to revenue and to the technology strategy here is the investment that we've made. Three key highlights in the technology roadmap.

Speaker #1: First of all , the AI powered cameras we've seen significant progress . In the last six months with these initiatives . So these are AI models that's been put on the local devices , on the vehicles , which detects hazards , obstacles , and people .

Speaker #2: And that's also where the growth have come from. Mobilizing those big machines came with additional cost and time lost, which impacted utilization, which we'll speak to you a little bit later on.

Speaker #2: And that margin of 5% is definitely not where we want it to be. So these additional cost of mobilizing equipment and some gaps that we've seen in our client programs directly impacted that operating margin.

Speaker #1: And then this device then communicates with the vehicle to take corrective action to prevent incidents . We really believe this technology can make a huge impact in the safety here in South Africa for underground miners , a huge challenge that the underground miners , specifically the gold miners in South Africa , is struggling with , is this last mile of communication getting communication or getting connectivity into these workspaces .

Speaker #2: Some news that we need to share, and this is unfortunate news. We've lost 2 gigamata contract with Cudelco. This has been a contract that we've been busy with for the past 6 years.

Speaker #2: We were unable to renew or extend that contract. And that contract has a clear and impact on the revenue forecast for Chile for the next few years.

Speaker #1: And that's been a challenge for many , many years and R , together with ache , came up with a solution . Proprietary network infrastructure model that is being installed in that last mile of that last mile of communication to really get communication and internet connectivity to these faces , we've already tested this at a number of mines here in South Africa , and we believe this can bring a lot of value to our clients .

Roelof Swanepoel: We really believe this technology can make a huge impact in the safety here in South Africa for underground miners. A huge challenge that the underground miners, specifically the gold miners in South Africa, is struggling with is this last mile of communication, getting communication or getting connectivity into these work phases. That has been a challenge for many, many years. A&R, together with Embedded IQ, came up with a solution, proprietary network infrastructure model that is being installed in that last mile of communication to really get communication and internet connectivity to these phases. We have already tested this at a number of mines here in South Africa, and we believe this can bring a lot of value to our clients. On missing person locator. We have previously communicated on this.

Speaker #2: And you will also see that affect in the order book a little bit later. Moving on to South Africa. South Africa's revenue is up by about 50%.

Speaker #2: So very good signals coming from South Africa. Contributing 46.2 million dollars to the top line. That growth really came from three areas. First of all, the MTB getting to work in South Africa, which is good.

Speaker #1: I'm missing the missing person locator. We previously communicated on this. This is a really very important device to locate people underground and to know where people are at all times in underground operations.

Speaker #2: Secondly, the bigger end of the fleet machines, the triple XL machines in South Africa doing well. And then good growth coming from the ANR business for the first 6 months of the year, which assisted with that.

Speaker #1: This technology is now being commercialized and implemented in a number of mines in South Africa. And again, this technology directly relates to safety.

Speaker #2: On the margin side, slightly lower margins coming in, unfortunately our MDX business were not able to achieve the margins that it should have done.

Speaker #1: And we believe this will be a huge efficiency update on site in the future for underground miners. On the slim drilling side, the slim drilling strategy really talks to two legs.

Roelof Swanepoel: This is really a very important device to locate people underground and to know where people are at all time in underground operations. This technology is now being commercialized and being implemented in a number of mines here in South Africa. Again, this technology directly talks to safety, and we believe there is a huge efficiency upside in the future for underground miners. On the slim drilling side. The slim drilling strategy really talks to two legs. First of all, it is about geographical growth or growth in the Master Drilling Exploration and all core business. As we previously mentioned, we were able to expand the Master Drilling Exploration business outside of South Africa. Let us see how it goes the next six months, and we will definitely make sure and support the teams to get going outside of South Africa. On the technology roadmap, on the Desert Elephant and the Dragonfly machine.

Speaker #2: Okay, we're back online again. Apologies for that short interruption. Let's get going again. So as we were saying, Africa has been a stronghold for a very long time.

Speaker #1: First of all, it's about geographical growth, or growth in the MDX and all core business. And as we previously mentioned, we were able to expand the MDX business outside of South Africa.

Speaker #2: And a really strong and good contribution coming from that Africa region. It's good to see some of our operations in West Africa that has been halted by our clients.

Speaker #2: Those client projects starting up again and contributing towards that Africa region. On the rest of the world, good contribution, good growth coming through. We've seen some growth in Europe, specifically Iberia coming through.

Speaker #1: So let's see how it goes—the next six months. And we will definitely make sure to support the teams to get going outside of South Africa.

Speaker #1: Then, on the technology roadmap, the Desert Elephant and the Dragonfly machine are both in their development roadmap. The Dragonfly is already operational.

Speaker #2: India, and then some good news in Australia. Looks like we're improving on our local strategy. And we've been awarded one or two good contracts in that region.

Speaker #2: Which will reflect that will be reflected in our order book a little bit later. On our commodity revenue diversification, some movements here, but in general, about 80% of our revenue is generated by those four key commodities: gold, copper, silver, lead, and zinc.

Speaker #1: And these machines bring three things together , which is automation , automated road handling . And then electrification . And the whole purpose and objective of these machines is to get better information to our clients to assist them for faster decision making on where to explore and where to mine in the future Let's look at the last pillar , which is mechanical rock excavation and cutting .

Roelof Swanepoel: These machines are in their development roadmap. Dragonfly is already operational. These machines bring three things together, which is automation, automated rod handling, and electrification. The whole purpose and objective of these machines is to get better information to our clients to assist them for faster decision-making on where to explore and where to mine in the future. Let's look at the last pillar, which is mechanical rock excavation and cutting. As Danie mentioned earlier, this is a really exciting pillar for us, and a lot of investment over the years has gone into this division. First of all, on our strategy here, our strategy is very clear here. We want to put the building blocks of the technology together for miners to develop and build underground infrastructure quicker and safer.

Speaker #2: And the PGMs. One or two movements to highlight. First of all, gold. That's a clear trend that we're seeing. Moving up. In South America, assisted with that.

Speaker #2: But primarily the contribution came from the Africa region, which increased that. On the silver, lead, and zinc, also a small increase in that. That's really the growth that we're seeing in Europe.

Speaker #1: As Donny mentioned earlier, this is a really exciting pillar for us, and a lot of investment over the years has gone into this division.

Speaker #1: First of all , on our strategy here . Our strategy is very , very clear here . We want to put the building blocks of the technology together for miners to develop and build underground infrastructure quicker and safer .

Speaker #2: And in India. Let's move on to our Arpo summary. And utilization. Our utilization for the year on the rice boring fleet is down to 64%.

Speaker #2: But on the upside, that we're really countered by a higher Arpo that came through above 180,000 dollars. Let's talk to the detail. First of all, the bigger than large rice boring rigs.

Speaker #1: And we specifically focusing on two things , which is tunnels and shafts really access . And then finally extraction , which is the reef cutter , which we'll speak to a little bit later on a mechanical tunneling , as Donny mentioned earlier , the MTB , well , on its way on , on the Om project .

Speaker #2: Which the utilization is sitting at 70%. That is below that 75% benchmark that we have. A number of big machines have moved around, specifically between continents and have been mobilized to new contracts for the first half of the year.

Speaker #1: And we can also report that, globally, the demand for mechanical cutting or mechanical tunneling within mining projects is increasing. And that is globally.

Roelof Swanepoel: We are specifically focusing on two things, which are tunnels and shafts, really access, and then finally extraction, which is the ReefCutter, which we will speak to a little bit later on. On mechanical tunneling, as Danie mentioned earlier, the MTB is well on its way on the ARM project. We can also report that globally, the demand for mechanical cutting or mechanical tunneling within mining projects is increasing, and that is globally, and we are very excited about that in the future. On mechanical shaft drilling, a lot of development has happened in the last 6 months. We believe the SBS that we have developed internally, that machine, we are positive and motivated to put that on a project within the next year or 2.

Speaker #2: We expect a slight increase to come the second half of the year. Arpo creeping over 200,000 dollars for the first time, which is a great sign for the bigger machines.

Speaker #1: And we're very excited about that in the future. On mechanical shaft drilling, a lot of developments have happened in the last six months.

Speaker #1: We believe the SBS that we've developed and internally that machine we positive to and and and motivated to put that on a project within the next year or two .

Speaker #2: On the smaller end of the fleet, utilization slightly down to 52%. And a nice uptick in our Arpo to 123. Utilization on the slim drilling side, lower than in 2025.

Speaker #1: And, as Donny alluded to, having access to technology to drill a shaft blind at nine meters—this can really be a game changer for the industry.

Speaker #2: But that is as expected. As we communicated at the end of 2025, our whole core business in the group, one of each flagship clients in the platinum space, canceled their contract.

Speaker #1: Really something that the industry needs under non-explosive mining. Reef cutting—very, very good news. The technology is now being deployed in a tunnel in a project and excavating.

Speaker #2: Which resulted about 20 to 30 machines that we needed to demobilize from site. And that directly impacted our utilization. If we look at our order book movement, we started off the year at 371 million dollars.

Speaker #1: So more on that in further presentations. On our geographic revenue diversification, the group grew its top-line revenue to $155.8 million.

Roelof Swanepoel: As Danie alluded to, having access to technology to drill a shaft blind at 9 meters, this can really be a game changer for the industry and really something that the industry needs. On the non-explosive mining, ReefCutter, very good news. The technology is now being deployed in a tunnel, in a project, and excavating. So more on that in further presentations. On our geographic revenue diversification, the group grew its top-line revenue to $155.8 million. This is about 17% up from the same time in 2025. The growth really came across the board. Each region has seen some growth. On the margin side, it has been a bit of a mixed bag, but we will unpack that as we go through the different regions. First of all, Central and North America. Slight growth coming from that region, generating in dollars, $11.3 million. Revenue contribution slightly down to 7%.

Speaker #2: We received a record number of orders for the first half of this year, at 182 million. And then we ended the year at just over 400 million dollars.

Speaker #1: This is about 17% , up from the same time in 2025 . The growth really came across the board . Each region have seen some growth on the margin side , it's been a bit of a mixed bag , but we'll unpack that as we go through the different regions .

Speaker #2: Which is a new high for us. Let's look at awarded orders by commodity. Some big movements here. First of all, the one that stands out is on gold, jumping from 19 to 38%.

Speaker #1: First of all , central and North America , slight growth coming from that region , generating in dollars $11.3 million revenue contribution , slightly down to 7% .

Speaker #2: This increase in the amount of gold orders is really driven by additional contracts in Africa and specifically Australia, South America, small contribution there. Silver, lead, and zinc dropping to 20%.

Speaker #1: This region focused on three things for the first six months , which was on consolidation , consolidating some of those business units . Secondly , getting the commercial discipline right and then thirdly , to look at our fleet review .

Speaker #2: Nothing to be concerned about. It's just a cycle where we are with these contracts. Once these big contracts are renewed, that exposure will definitely go up again.

Speaker #2: And then clearly evident, as I mentioned, on the copper side, losing that working 2 gigamata significant impact. On our order book. And on copper, dropping from 25 to 14%.

Speaker #1: That and get that ready for the order book that needs to be executed for the next 18 months . Unfortunately , we came in at a break even level for the first six months , and this was really caused by client delays and extensions of , of some of the projects that we that we have and additional gaps in the schedule .

Speaker #2: And then maybe just a short mention on uranium. Which is a new kid on the block for us. Looking at our pipeline, our pipeline is just over 1 billion dollars.

Roelof Swanepoel: This region focused on three things for the first 6 months, which was on consolidation, consolidating some of those business units. Secondly, getting the commercial discipline right. Then thirdly, to look at our fleet, review that, and get that ready for the order book that needs to be executed for the next 18 months. Unfortunately, we came in at a break-even level for the first 6 months, and this was really caused by client delays and extensions of some of the projects that we have and additional gaps in the schedule. Good news from the region is that we were able to deploy remote operating or remote drilling systems in Canada, and Gary and the team already have seen huge advantage of implementing this technology in that region with huge efficiency upsides. Talking to South America, slight growth coming from South America, increasing the revenue to $44.3 million.

Speaker #1: Good news from the region is that we were able to deploy remote operating or remote drilling systems in Canada. The team has already seen huge advantages of implementing this technology in that region, with significant efficiency upsides.

Speaker #2: For the first time for us, this is a new record. To put this into context, we finished at the end of last year or at the end of June last year.

Speaker #2: With a pipeline of about 515 or 510 million dollars. Now this have doubled. So this is a real positive sign for us. If you look at the rest of 2026, 165 million dollars of work still to need to be done.

Speaker #1: Talking to South America, we saw slight growth coming from South America, increasing the revenue to $44.3 million. The contribution in revenue dropped to 28%.

Speaker #2: That's a lot of work. And hopefully we can get all of that done without any client delays. And then finally, on my operational summary, if you look at the first 6 months, record revenues for us.

Speaker #1: The good news is a number of bigger machines is within that region , and that's also where the growth have come from . Mobilizing those big machines came with additional cost and time lost , which impacted utilization , which will speak to you a little bit later on .

Speaker #2: Although utilization slightly down, we were able to increase the Arpo. We're making good progress across all our business pillars on the technology space. And finally, we're sitting with an order book and a pipeline that looks very, very healthy.

Speaker #1: And that margin of 5% is definitely not where we want it to be. So, these additional costs of mobilizing equipment, and some gaps that we've seen in our client programs, directly impacted that operating margin.

Speaker #2: So we're in for a very interesting 12 months. Thank you. Over to you, Andre.

Roelof Swanepoel: Contribution in revenue dropped to 28%. The good news is a number of bigger machines is within that region, and that is also where the growth have come from. Mobilizing those big machines came with additional cost and time lost, which impacted utilization, which we will speak to you a little bit later on. That margin of 5% is definitely not where we want it to be. These additional costs of mobilizing equipment. Some gaps that we have seen in our client programs directly impacted that operating margin. Some news that we need to share, and this is unfortunate news. We have lost a Chuquicamata contract with Codelco. This has been a contract that we have been busy with for the past 6 years. We were unable to renew or extend that contract, and that contract has a clear impact on the revenue forecast for Chile for the next few years.

Speaker #1: Some news that we need to share , and this is unfortunate news . We've lost Chuquicamata contract with Codelco . This has been a contract that we've been busy with for the past six years .

Speaker #1: Thank you, Roelof. So I've got the privilege to take you through the financial information. Sorry about the power failure. I thought we maybe didn't pay the bills, but that was not the issue.

Speaker #1: We were unable to renew or extend that contract and that contract as a as a clear and impact on the revenue forecast for for Chile for the next few years .

Speaker #1: I'm going to start off with the key highlights for the period. Then we're going to look at the trends on the headline earnings in US dollars and in rand terms.

Speaker #1: And you will also see that effect in the order book a little bit later. Moving on to South Africa, South Africa's revenue is up by about 50%.

Speaker #1: We'll have a look at the revenue trends and the margins on EBITDA. Something the South Africans investors like to have a look at is the compounded annual growth rate in revenue and EBITDA in rand terms.

Speaker #1: So very good signals coming from South Africa contributing $46.2 million to the top line . That growth really came from three areas . First of all , the MTB getting to work in South Africa , which is good .

Speaker #1: Secondly, the bigger end of the fleet machines, the triple XL machines in South Africa, are doing well, and then good growth is coming from the A & R business for the first six months of the year, which assisted with that. On the margin side, slightly lower margins are coming in.

Speaker #1: We'll have a quick look at the balance sheet, then at the income statement. We'll have a look at the impact on currency on the results for this period.

Roelof Swanepoel: You will also see that effect in the order book a little bit later. Moving on to South Africa. South Africa's revenue is up by about 50%. Very good signals coming from South Africa, contributing $46.2 million to the top line. That growth really came from three areas. First of all, the MTB getting to work in South Africa, which is good. Secondly, the bigger end of the fleet machines, the triple XL machines in South Africa doing well. Then good growth coming from the A&R business for the first 6 months of the year, which assisted with that. On the margin side, slightly lower margins coming in. Unfortunately, our index business were not able to achieve the margins that it should have done. On Africa has always been our stronghold. The last couple of years. Okay, we back online again. Apologies for that short interruption.

Speaker #1: We'll also have a look at the main drivers for the revenue for the period. And then moving to the working capital. To have a look at that.

Speaker #1: Unfortunately , our MDX business were not able to to achieve the margins that it should have done on Africa . Africa has always been our stronghold .

Speaker #1: We'll look at the key ratios. Which shows an improving trend for this period. Second last slide, we'll look at the cash flow. A movement for the period.

Speaker #1: The last couple of years Okay . We back online again . Apologies for that short interruption . Let's get going again . So as we were saying , Africa has been our stronghold for , for a very long time and a really strong and good contribution coming from that Africa region .

Speaker #1: And to finish off, we'll look at the capital spend in the highlights of that. So if we can start with the highlights. As Roelof also mentioned, revenue grew by 17% for the period.

Speaker #1: A record of 155 million dollars for the period. We had a very good liquidity position, improving to 1.92. And then our return on capital is, as improved to 15.3%.

Speaker #1: And then on the capital, we'll look at the slide at the end. But very focused capital spend for this period. If we look at the headline earnings per share, pretty much aligned with the revenue growth.

Speaker #1: Revenue growing by 17% and the headline earnings growing by 16.7%. So a very good performance on that. In rand terms, much lower, only 4.1%.

Speaker #1: But that's due to emerging currencies for the first time in a very long time. Being much stronger against the and especially the rand being stronger against the dollars.

Speaker #1: We actually anticipate that this will continue for some further time. If we look at the EBITDA margins, EBITDA at 33.6 million dollars for the 6 months.

Speaker #1: It's good to see some of our operations in West Africa that had been halted by our clients, those client projects starting up again and contributing towards that.

Speaker #1: Which is a record for us for first half of the year. The margin, 21.6%. We have been communicating that we would like to get that to 25%.

Speaker #1: Africa region and the rest of the world . Good contribution , good growth coming through . We've seen some growth in Europe , specifically Iberia coming through India and then some good news in Australia .

Speaker #1: We did have some ones of cost of the ERP rollout. And associated cost with that, that was about 4 million dollars for the 6 months.

Roelof Swanepoel: Let us get going again. As we were saying, Africa has been our stronghold for a very long time and a really strong and good contribution coming from that Africa region. It is good to see some of our operations in West Africa that has been halted by our clients. Those client projects starting up again and contributing towards that Africa region. On the rest of the world, good contribution, good growth coming through. We have seen some growth in Europe, specifically Iberia coming through India, and then some good news in Australia. Looks like we improving on our local strategy, and we have been awarded one or two good contracts in that region, which will be reflected in our order book a little bit later.

Speaker #1: Looks like we we improving on our local strategy . And we've been awarded 1 or 2 good contracts in that region which will reflect it will be reflected in our order book a little bit later On our commodity revenue diversification , some movements here , but in general , about 80% of our revenue is generated by those four key commodities gold , copper , silver , lead and zinc .

Speaker #1: If we can count that back, we're close to 24%. So not too far off from the 25%. Also that what's reduced the margin is our machine utilization.

Speaker #1: Roelof referred to that. Much lower than where we want it to be. And I think on the positive side is the bigger machines, especially the XXXL machines, that's fully utilized.

Speaker #1: And on the and the Pgm's 1 or 2 movements to highlight , first of all , gold . That's a clear trend that we're seeing moving up in South America associated with that .

Speaker #1: And then the MTB. Actually doing quite well there on the project now. So having a good contribution. If we look at the compounded annual growth rate in rands, the Arpo for the first time this the rand didn't help us on this figure.

Speaker #1: But primarily, the contribution came from the Africa region, which increased that. And the silver, lead, and zinc also saw a small increase in that.

Speaker #1: That's really the growth that we're seeing in Europe and in India. Let's move on to our output summary and utilization. Our utilization for the year on the raise boring fleet is down to 64%.

Roelof Swanepoel: On our commodity revenue diversification, some movements here, but in general, about 80% of our revenue is generated by those four key commodities: gold, copper, silver, lead and zinc and the PGMs. One or two movements to highlight. First of all, gold. That is a clear trend that we are seeing moving up in South America assisted with that, but primarily, the contribution came from the Africa region, which increased that. On the silver, lead and zinc, also a small increase in that. That is really the growth that we are seeing in Europe and in India. Let us move on to our ARPOR summary and utilization. Our utilization for the year on the raise boring fleet is down to 64%. But on the upside, that we really countered by a higher ARPOR that came through above $180,000. Let us talk to the detail.

Speaker #1: If we look at compounded growth from 2022 to 2026, much lower at 8.4% in the revenue. Where it was over 17% last year. And on the EBITDA, which is just over 1 billion rand.

Speaker #1: But on the upside that we're really countered by a higher output that came through above $180,000 . Let's talk to the detail . First of all , the bigger than large rice boring rigs , which the utilization is sitting at 70% .

Speaker #1: Growing at just over 7% in last year. It was 15%. So the rand not helping us this period. But obviously over the long term, a rand is a bit weaker than the dollars.

Speaker #1: That is below the 75% benchmark that we have. A number of big machines have moved around, specifically between continents, and we have two new contracts for the first half of the year.

Speaker #1: So that should return. Just to remind you, I mean, we analyzed 5 million rands in 5 billion rands revenue for this year. If we analyze it.

Speaker #1: And we expect a slight increase to come the second half of the year . Our poor creeping over 200 zero zero $0 for the first time , which is a great sign for the bigger machines on the smaller end of the fleet utilization , slightly down to 52% , and a nice uptick in our output to 123 utilization on the slim drilling site , lower than in 2025 .

Speaker #1: And when we list it in 2012, we were at 800 million rands. So quite a nice growth for us as a group. If we look at the balance sheet, you'll notice a very limited growth in capex for the period.

Roelof Swanepoel: First of all, the bigger than large raise boring rigs, the utilization is sitting at 70%. That is below that 75% benchmark that we have. A number of big machines have moved around specifically between continents and have been mobilized to new contracts for the H1 of the year. We expect a slight increase to come the H2 of the year. ARPU creeping over $200,000 for the first time, which is a great sign for the bigger machines. On the smaller end of the fleet, utilization slightly down to 52% and a nice uptick in our ARPU to 123. Utilization on the slim drilling side, lower than in 2025, but that is as expected.

Speaker #1: But that is as expected as we communicated at the end of 2025 . Our whole core business in the group one of its flagship clients in the platinum space , canceled their contract , which resulted about 20 to 30 machines that we needed to demobilize from site , and that directly impacted our utilization .

Speaker #1: Which was very focused spend for this period. We'll talk about that when we get to that final slide. On the current ratios mentioned, up to 1.92.

Speaker #1: So quite nice liquid position. The working capital days, jump to nearly 100 days. We'll also give more detail on that when we get to that slide.

Speaker #1: If we look at our order book movement, we started off the year at $371 million. We received a record number of orders for the first half of this year.

Speaker #1: And gearing up 6% for the period. Mostly to fund the working capital movement for the period. And then just to, on the payables, you'll see reduction on the payables.

Speaker #1: At $182 million, and then we ended the year at just over $400 million, which is a new high for us. Let's look at awarded orders by commodity.

Roelof Swanepoel: As we communicated at the end of 2025, our whole core business in the group, one of its flagship clients in the platinum space, canceled their contract, which resulted about 20 to 30 machines that we needed to demobilize from site. That directly impacted our utilization. If we look at our order book movement, we started off the year at $371 million. We received a record number of orders for the H1 of this year at $182 million, and then we ended the year at just over $400 million, which is a new high for us. Let's look at awarded orders by commodity. Some big movements here. First of all, the one that stands out is on gold, jumping from 19% to 38%. This increase in the amount of gold orders is really driven by additional contracts in Africa and specifically Australia. South America, small contribution there.

Speaker #1: And that was mostly due to the guys in Latin America, where we had the phase two rollout of the ERP system that wanted to clear all their payables for easier take on in the new system.

Speaker #1: Some big movements here . First of all , the one that stands out is on gold jumping from 19 to 38% . This increase in the amount of gold orders is really driven by additional contracts in Africa .

Speaker #1: So they cleared quite a lot of the payables for the period. If we look at the income statement, as mentioned, the 17% growth in revenue, which is quite good.

Speaker #1: And specifically Australia , South America , small contribution there , silver lead and zinc dropping to 20% . Nothing to be concerned about .

Speaker #1: On the operating income, 1.2 million dollars of forex profit that we made for the period last year. There were more than 3 million profit on forex.

Speaker #1: It's just a cycle where we are with these contracts. Once these big contracts are renewed, that exposure will definitely go up again.

Speaker #1: On the labor cost, which is basically our biggest cost driver, increased quite a lot. Up to 65 million dollars for the period compared to 50.

Speaker #1: And that's clearly evident, as mentioned on the copper side—losing that work in Chuquicamata had a significant impact on our order book and on copper, dropping from 25% to 14%.

Speaker #1: Last year, this time. Which is about 42% of our revenue. We try and target 35%. So considerably higher most of that also due to a stronger local currency.

Speaker #1: And then maybe just a short mention on uranium, which is a new kid on the block for us. Looking at our pipeline, our pipeline is just over $1 billion for the first time.

Speaker #1: For us, this is a new record. To put this into context, we finished at the end of last year, or at the end of June last year, with a pipeline of about $550 million or $510 million.

Speaker #1: Which increased the amount in dollars. And as mentioned, the 4 million dollars on the ERP spend for this half, that's a bit of a ones of cost.

Roelof Swanepoel: Silver, lead, and zinc dropping to 20%. Nothing to be concerned about. It's just a cycle where we are with these contracts. Once these big contracts is renewed, that exposure will definitely go up again. Then clearly evident, as I mentioned on the copper side, losing that work in Chuquicamata, a significant impact on our order book and on copper, dropping from 25% to 14%. Then maybe just a short mention on uranium, which is a new kid on the block for us. Looking at our pipeline. Our pipeline is just over $1 billion. For the first time for us, this is a new record. To put this into context, we finished at the end of last year or at end of June last year, with a pipeline of about $515 or $510 million. Now, this have doubled. So this is a real positive sign for us.

Speaker #1: If we look at the impact on the currency on the results, overall 1.2 million dollars positive effect on the results. Actually for the first time, ever, I think, we had hard currency lower than 50%.

Speaker #1: Now , this have doubled . So this is a real positive sign for us . If you look at the rest of 26 , $165 million of work still need to be done .

Speaker #1: That's a lot of work . And hopefully we can get all of that done without any client delays . And then finally , on my operational summary , if you look at the first six months , record revenues for us , although utilization slightly down , we were able to increase the output .

Speaker #1: At 45%. Biggest reason for that is South African operations contributed a bit more than what they used to. Previously, up to 30% of our total revenue which is rand based.

Speaker #1: We're making good progress across all our business pillars . On the technology space . And finally , we're sitting with an order book and a pipeline that looks very , very healthy .

Speaker #1: So hard currency revenue a bit less. And on the cost side, pretty much still the same 33% on the cost that's in hard currency.

Speaker #1: So, we're in for a very interesting 12 months. Thank you. Over to you, Andre.

Roelof Swanepoel: If you look at the rest of 2026, $165 million of work still need to be done. That's a lot of work, and hopefully we can get all of that done without any client delays. Then finally, on my operational summary, if you look at the first six months, record revenues for us. Although utilization slightly down, we were able to increase the ARPOR. We're making good progress across all our business pillars on the technology space. Finally, we're sitting with an order book and a pipeline that looks very, very healthy. So we're in for a very interesting 12 months. Thank you. Over to you, André.

Speaker #1: If we move on to the revenue waterfall, the biggest drivers for the growth in revenue was the foreign exchange. That quite a big impact.

Speaker #2: Thank you So I got the privilege to take you through the financial information . Yeah . Sorry about the power failure . I thought we maybe didn't pay the bills , but that was not the issue .

Speaker #1: 8 million dollars on our growth in revenue from last year to this year. Given the strongly emerging currencies. And as Roelof mentioned, the A&R business adding nearly 6 million dollars to the revenue.

Speaker #2: I'm going to start off with the key highlights for the period. Then we're going to look at the trends in headline earnings in US dollars and in rand terms.

Speaker #1: Period to period compared. And I recall when we discussed full year numbers for 2025, we did mention that there was some orders that A&R couldn't execute on last year.

Speaker #2: We'll have a look at the revenue trends and the margins on EBITDA. Something that South African investors like to have a look at is the compounded annual growth rate in revenue and EBITDA in Rand terms.

Speaker #1: And that rolled over to 2026. That gave us that nice benefit. And then on the TBM, adding 3.8 million dollars to the revenue line.

Speaker #2: We'll have a quick look at the balance sheet and the income statement. We'll have a look at the impact of currency on the results for this period.

André van Deventer: Thank you, Roelof. I have the privilege to take you through the financial information. Sorry about the power failure. I thought we maybe did not pay the bills, but that was not the issue. I am going to start off with the key highlights for the period. Then we are going to look at the trends on the headline earnings in USD and in ZAR terms. We will have a look at the revenue trends and the margins on EBITDA. Something that South Africans investors like to have a look at is the compounded annual growth rate in revenue and EBITDA in ZAR terms. We will have a quick look at the balance sheet, then at the income statement. We will have a look at the impact on currency on the results for this period.

Speaker #1: For the period. Actually Danny mentioned that as well. I think close to eating all the operating targets. And also on the cost side, the cost for the client coming nicely down.

Speaker #2: We also have a look at the main drivers for the revenue for the period. And then, moving to the working capital, we'll have a look at that.

Speaker #1: And pretty much now aligned with conventional development costs for the miners. And the last contributor to the higher revenue was the higher Arpo and the fleet utilization mix.

Speaker #2: We'll look at the key ratios, which show an improving trend for this period. Second last slide, we'll look at the cash flow and movement for the period.

Speaker #2: And to finish off we'll look at the capital spend and the highlights of that . So if we can start with the with the highlights as also mentioned , revenue grew by 17% for the period .

Speaker #1: If we look at the working capital, you see quite a considerable increase in our receivables. Mainly driven by the following items. It was May and June was pretty good revenue months.

Speaker #2: A record of $155 million for the period . We had a very good liquidity position , improving to 1.92 . And then our return on capital is as improved to 15.3% .

Speaker #1: Which all of that of this is still stuck in our debted balances. On the emerging currency, had an effect on the value in dollars.

André van Deventer: We will also have a look at the main drivers in the revenue for the period, and then moving to the working capital to have a look at that. We will look at the key ratios, which shows an improving trend for this period. Second last slide, we will look at the cash flow, movement for the period, and to finish off, we will look at the capital spend and the highlights of that. If we can start with the highlights. As Roelof also mentioned, revenue grew by 17% for the period, a record of $155 million for the period. We had a very good liquidity position, improving to 1.92, and then our return on capital has improved to 15.3%. On the capital, we will look at the slide at the end, but very focused capital spend for this period.

Speaker #1: With emerging currency getting stronger. And then the last point was amendment on contracts with the clients. Which takes a bit longer to get approved and paid.

Speaker #2: And then on the capital, we look at a slide at the end, but very focused capital spend for this period. If we look at the headline earnings per share...

Speaker #1: Which is obviously you wait a bit longer for your money. But which in a way is good because you get more revenue from your current contracts that you've got in place.

Speaker #2: Pretty much aligned to the revenue growth, with revenue growing by 17%, and the headline earnings growing by 16.7%. So, a very good performance on that.

Speaker #1: I think the good thing is, only 15% of our debtors are older than 90 days. So most of the debtors are normal terms 1 to 2 months overdue.

Speaker #2: In terms much lower . Only 4.1% . But that's due to emerging , emerging currencies for the first time in a very long time , being much stronger against the and especially the rand being stronger against the dollar , dollar .

Speaker #1: On the payables, I did mention that we actually settled quite a lot of payables in this period. We also do have agreement with most of our strategic suppliers to align our payments to them to how we recover the money from the clients.

Speaker #2: We actually anticipate that this will continue for some further time. If we look at the EBITDA margin, EBITDA was $33.6 million for the six months, which is a record for us for the first half of the year, with the margin at 21.6%.

Speaker #1: If we look at our ratios, the ratios are returns are pretty flat compared to previous years. The return on equity at 14%, which is nicely higher than what it was in 2025.

André van Deventer: If we look at the headline earnings per share, pretty much aligned with the revenue growth. Revenue growing by 17% and the headline earnings growing by 16.7%, so a very good performance on that. In ZAR terms, much lower, only 4.1%, but that is due to emerging currencies for the first time in a very long time, being much stronger against the and especially the ZAR being stronger against the dollar. We actually anticipate that this will continue for some further time. If we look at the EBITDA margins. EBITDA at $33.6 million for the 6 months, which is a record for us for H1 of the year. The margin, 21.6%. We have been communicating that we would like to get that to 25%. We did have some once off costs of the ERP rollout, and associated costs with that. That was about $4 million for the 6 months.

Speaker #2: We have been communicating that we would like to get that to 25%. We did have some once-off costs from the ERP rollout and associated costs with that.

Speaker #1: But we've always mentioned that we are not a company that will be highly geared. So the return on equity would won't ever shoot the lights out.

Speaker #2: That was about $4 million for the six months . If we can count that back . We are close to 24% . So not too far off from the 25% .

Speaker #2: Also , that what reduced the the margin is our machine utilisation . We refer to that much lower than than we want it to be .

Speaker #1: So I think we're quite happy with the 14% that we have there. Return on capital, marginally up to 15.3%. As mentioned on the working capital days, heading towards 100 days.

Speaker #2: And I think, on the positive side, it's the bigger machines, especially machines that are fully utilized, and then the MTV is actually doing quite well there on the project now.

Speaker #1: So we believe we can get back to the 81 days that we were at 2025. A lot of hard work to do on that number.

Speaker #1: Pretty much like the Springbucks will need to do this week before the next test against the All Blacks. And then just the gearing up by 6%.

Speaker #2: So having a good contribution If we look at the compound annual growth rate in rands airport for the first time , this this the rate isn't didn't help us on this figure .

Speaker #1: I think the good thing about that is even with the debt going up by 6%, we managed to keep the finance cost pretty flat period on period.

André van Deventer: If we can count that back, we are close to 24%, so not too far off from the 25%. Also, what has reduced the margin is our machine utilization. Roelof referred to that, much lower than where we want it to be. I think on the positive side is the bigger machines, especially the triple XL machines that is fully utilized and then the MTB actually doing quite well there on the project now. So, having a good contribution. If we look at the compounded annual growth rate in ZAR. Paul, for the first time, the ZAR did not help us on this figure. If we look at compounded growth from 2022 to 2026 much lower at 8.4% in the revenue, where it was over 17% last year. On the EBITDA, which is just over ZAR 1 billion, growing at just over 7%, and last year it was 15%.

Speaker #1: Which shows a lower cost of debt for the business. If we look at the waterfall on the cash flow, much lower cash generated for this period compared to previous periods.

Speaker #2: If we look at compounded growth from 2022 to 2026, it's much lower at 8.4% in revenue, whereas it was over 17% last year.

Speaker #1: As mentioned, mostly due to the increase in our working capital cycle. Only 4 million dollars spent on CapEx. And that's just we get a lot of questions on what levers do we have.

Speaker #2: And on the Airtel, which is just over 1 billion rand, growing at just over 7%, and last year it was 15%.

Speaker #2: So, the rand not helping us this period, but, you know, obviously, over the long term, the rand is a bit weaker than the dollar.

Speaker #1: If we our working capital blows out a bit or we don't perform as we suppose to. But I think that's a good thing. On the CapEx, we always got that lever where we can cut back on capital spend.

Speaker #2: So that should return remind you , I mean , we analyse 5 million rands in 5 billion range revenue for for this year .

Speaker #1: And be responsible on our spend on CapEx. During the period also we had to pay back 11 million dollars of debt to our lenders.

Speaker #2: If we analyse it . And when we list it in 2012 , we were at 800 million rand . So quite a nice growth for us as a group .

Speaker #1: And then we also did a drawdown of 18 million dollars. Most of that being used to fund the working capital cycle. Sufficient cash left end of the year to fund our strategic growth.

Speaker #2: If we look at the balance sheet, you'll notice very limited growth in CapEx for the period, which was very focused spending for this period.

Speaker #2: We'll talk about that when we get to that final slide on the current ratio, up to 1.92. So, quite a nice liquid position.

Speaker #1: And just on the capital spend for the period, only 4.3 million dollars spent for this period. Biggest portion was our maintenance capital 56% of that.

André van Deventer: The ZAR not helping us this period, but over the long term, ZAR is a bit weaker than the USD, so that should return. Just to remind you, we analyzed ZAR 5 billion revenue for this year, if we analyze it. When we listed in 2012, we were at ZAR 800 million. Quite a nice growth for us as a group. If we look at the balance sheet, you will notice a very limited growth in CapEx for the period, which was very focused spend for this period. We will talk about that when we get to that final slide. On the current ratio, as mentioned, up to 1.92, quite nice liquid position. The working capital days jumped to nearly 100 days. We will also give more detail on that when we get to that slide.

Speaker #2: The working capital days jumped to nearly 100 days. We'll also give more detail on that when we get to that slide. And gearing is up 6% for the period, mostly to fund the working capital movement for the period.

Speaker #1: On the expansion, most of it was spent on the assets on the construction. There's currently still 5 machines under construction. And on the shelf boring system, capital spent there.

Speaker #1: We have 6 million dollars committed in CapEx for second half of the year. And just after the half year finished, we actually got a very nice contract.

Speaker #2: And then just to on the payables , you'll see reduction on the payables . And that was mostly due to the guys in in Latin America , where we had the phase two rollout of the ERP system that wanted to clear all the payables for easier take on in the new system .

Speaker #1: The other of Australia. Which we need to procure new equipment for. Which we don't have in the fleet. So that will increase the capital spend also a bit.

Speaker #2: So they cleared quite a lot of the payables for the for the period . If we look at the the income statement , as mentioned , there's 17% growth in revenue , which is quite good on the operating income , $1.2 million of forex profit that we made for the period last year .

Speaker #1: That's it from my side. Danny, I think you can do the close.

Speaker #2: Thank you, Andre. We should probably see a sharp increase in share price after the operation station. So maybe the three takeaways just to wrap up in conclusion.

Speaker #2: There were more than $3 million profit on forex on the labor costs, which is basically our biggest cost driver. Increased quite a lot, up to $65 million for the period compared to $50 million last year.

André van Deventer: Gearing up 6% for the period, mostly to fund the working capital movement for the period. On the payables, you will see a reduction on the payables, and that was mostly due to the guys in Latin America, where we had the phase 2 rollout of the ERP system that wanted to clear all their payables for easier take-on in the new system. So they cleared quite a lot of the payables for the period. If we look at the income statement, as mentioned, there is 17% growth in revenue, which is quite good. On the operating income, $1.2 million of Forex profit that we made for the period. Last year, there were more than $3 million profit on Forex. On the labor cost, which is basically our biggest cost driver, increased quite a lot, up to $65 million for the period, compared to $50 million last year this time.

Speaker #2: On the presentation, I think one, the company is I believe is well established now. For the past 40 years, building blocks probably well intact.

Speaker #2: Well diversified. And I think we should leverage the footprint of the business given the experience and client base. Two, I do believe that mechanical cutting will be key to this business revenue line.

Speaker #2: At this time , which is about 42% of our revenue . We try and target 35% . So , so considerably higher . Most of that also due to a stronger local currency , which increased the amount in dollars , as mentioned , the $4 million on the ERP spend for this half that that's a bit of a once off cost .

Speaker #2: And I really think the returns that we should generate from mechanical cutting with probably move the needle for our business going forward. And then lastly, maybe the model that we followed back in the day and up to today.

Speaker #2: To do everything in-house. I think we were probably follow some sort of a hybrid model. Where we would lean probably more towards the so-called leading OEMs in the world.

Speaker #2: If we look at the impact on the currency , on the results overall , $1.2 million positive effect on , on on the results .

Speaker #2: With a specific focus on speed and then obviously execution. So on a high level, this is probably what you would see in the short, medium term playing out from our end.

Speaker #2: Actually, for the first time ever, I think we had hard currency lower than 50%, at 45%. The biggest reason for that is South African operations contributed a bit more than what they used to previously.

Speaker #2: Any questions from your side, Willem?

Speaker #2: Up to 30% of our total revenue , which which is Rand based . So hard currency revenue a bit less . And on the cost side , pretty much still the same 33% on on the cost .

Speaker #1: Okay. Danny, the first question coming in here is with the exciting mechanical cutting technology Roelof spoke about earlier in the presentation. Do you see the group benefit from this in the near future?

André van Deventer: Which is about 42% of our revenue. We try and target 35%, so considerably higher. Most of that also due to a stronger local currency, which increased the amount in USD. As mentioned, the $4 million on the ERP spend for this half, that is a bit of a once-off cost. If we look at the impact on the currency on the results, overall, $1.2 million positive effect on the results. Actually, for the first time ever, I think, we had hard currency lower than 50% at 45%. Biggest reason for that is South African operations contributed a bit more than what they used to previously, up to 30% of our total revenue, which is ZAR-based. So hard currency revenue a bit less. On the cost side, pretty much still the same, 33% on the cost that is in hard currency.

Speaker #1: And by what?

Speaker #2: I think as we speak, the MTB as we speak is generating some revenues. Which I think Andre alluded to. And I would like to think in the next 2, 3 years we should probably see more of those machines somewhere in the world operating.

Speaker #2: That's in hard currency. If we move on to the revenue waterfall, the biggest drivers for the growth in revenue were the foreign exchange, which had quite a big impact.

Speaker #2: I think the shelf boring system probably in the medium term I think important is that the shelf boring system a shelf boring machine today is available again what I said earlier on.

Speaker #2: $8 million on growth in revenue from last year to this year . Given the strong emerging currencies . And as I mentioned , the A&R business adding nearly $6 million to the revenue period to period compared and I recall when we discussed full year numbers for 2025 , we did mention that there was some orders that that A&R couldn't execute on last year , and that rolled over to 2026 .

Speaker #2: That system is available and probably in a 12 month period if you place an order today it could be probably somewhere in the world being deployed.

Speaker #2: And by the way that shelf boring systems a 9 meter shelf borer would probably generate 50% of the current revenues of the current business.

Speaker #2: That gave us that nice benefit . And then on the on the TBM adding $3.8 million to the revenue line for the period Actually , very Donnie mentioned that as well .

Speaker #2: So just to contextualize that. Anything else for them?

Speaker #1: Thanks for Roelof. And it relates to the pipeline. With the significant increase in the pipeline and the order book, how many new race ball rigs do you expect to build to achieve this pipeline in the short to medium term?

André van Deventer: If we move on to the revenue waterfall, the biggest drivers for the growth in revenue was the foreign exchange. That had quite a big impact, $8 million on our growth in revenue from last year to this year, given the stronger emerging currencies. As Srulov mentioned, the A&R business adding nearly $6 million to the revenue, period to period compared. I recall when we discussed fully our numbers for 2025, we did mention that there were some orders that A&R couldn't execute on last year, and that rolled over to 2026. That gave us that nice benefit. On the TBM, adding $3.8 million to the revenue line for the period. Danie mentioned that as well. I think close to hitting all the operating targets.

Speaker #2: I think we're close to hitting all the operating targets, and also on the cost side, the cost for the client is coming nicely down and is now pretty much aligned with conventional development costs for the miners. And lastly, what contributed to the higher revenue was the higher output and the fleet utilization mix.

Speaker #2: Thank you, Willem. That's an interesting question. Yes, we see very positive signals in our pipeline. And that pipeline growth is coming from across the group.

Speaker #2: All the regions we see growth in that pipeline. Also the same in our order book. In terms of the machines to be built, that is something that we're monitoring very carefully.

Speaker #2: If we look at the working capital, you see quite a considerable increase in our receivables, mainly driven by the following items.

Speaker #2: The great thing about our business that we vertically integrated, we can react very quickly to bring these machines online. Anything from 6 months to 9 months.

Speaker #2: It was May and June was pretty good . Revenue month , which all of that are obviously still still stuck in our debt balances .

Speaker #2: So we have that ability to react. As we speak, there's a few rigs which is under construction. As we speak, which will come on later this year.

Speaker #2: On the emerging currency, it had an effect on the value in dollars, with the emerging currency getting stronger. And then the last point was mentioned on contracts with the clients, which takes a bit longer to get approved.

Speaker #2: And we will keep on monitoring that. And when we deem fit that requirement, we will evaluate the returns and build machines. Thank you.

Speaker #2: And paid , which is , you know , obviously you wait a bit longer for your money , but which in a way is good because you get more revenue from your current contracts that you've got got in place .

Speaker #1: Another one is the increase in the revenue from 16% to 28% in the rest of the world. Do you see that sustainable or was it a once-off contract or something similar that happened during this 6 months?

André van Deventer: Also on the cost side, the cost for the client coming nicely down and pretty much now aligned with conventional development costs for the miners. The last contributor to the higher revenue was the higher ARPU and the fleet utilization mix. If we look at the working capital, you see quite a considerable increase in our receivables, mainly driven by the following items. May and June were pretty good revenue months, all of that are obviously still stuck in our debted balances. On the emerging currency had an effect on the value in USD, with emerging currency getting stronger. The last point was amendments on contracts with the clients, which takes a bit longer to get approved and paid.

Speaker #2: I think the good thing is only 15% of our debtors are older than 90 days. So, most of the debtors are on normal terms.

Speaker #2: I don't think it's necessarily a once-off. The growth that we're seeing is across all the regions. Specifically in the rest of the world, our European business was really performing well for the first half compared to the same period in 2025.

Speaker #2: One , 1 to 2 months overdue on the payables , I did mention that we we actually settled quite a lot of payables in , in this period .

Speaker #2: Also India business, good contributions coming. And adding one or two additional regions to the rest of the world also needs to be considered in those numbers.

Speaker #2: We also do have agreement with most of our strategic suppliers to align our payments to them to how we recover the money from from the clients If we look at our ratios , the ratios are returns are pretty flat compared to previous years .

Speaker #2: But we believe positive signals and we see good growth coming from the rest of the world segment.

Speaker #1: Last one on the revenue is the increase in the revenue amounted to a record high. Which amounted to 17%. What is the main breakdown drivers behind this growth?

Speaker #2: The return on equity at 14% , which is which is nicely higher than what it was in in 2025 . But we've always mentioned that we are not a company that will be highly geared .

André van Deventer: Which obviously, you wait a bit longer for your money, but which in a way is good because you get more revenue from your current contracts that you have in place. I think the good thing is, only 15% of our debtors are older than 90 days. So most of the debtors are normal terms, one to two months overdue. On the payables, I did mention that we actually settled quite a lot of payables in this period. We also have agreement with most of our strategic suppliers to align our payments to them to how we recover the money from the clients. If we look at our ratios. Ratios are returns are pretty flat compared to previous years. The return on equity at 14%, which is nicely higher than what it was in 2025.

Speaker #2: I think Andre had a very nice waterfall slide. Explaining that 17%. But maybe just to re-emphasize one or two things there. I think the big one of the big drivers were the MTB.

Speaker #2: So the return on equity with won't ever , you know , shoot the light out . So I think we might have 14% that we have there return on capital marginally up to 15.3% , as mentioned on the working capital days heading towards 100 days .

Speaker #2: That's in production now. I think that's about 5 or 6 million dollars if I could remember. I think the currency had a huge impact with the big rand base that we had in South Africa.

Speaker #2: On the I think they call it industrial products in the presentation. That ANR business and other 5, 6 million dollars contributed there. And then finally, fleet mixes which was a small contribution.

Speaker #2: So we can get back to the 81 days that we were at in 2025. A lot of hard work to do on that number.

Speaker #2: Pretty much like the Springboks will need to do this week before their next test against the All Blacks . And then just for gearing up by 6% , I think the good thing about that is , even with the debt going going up by 6% , we managed to keep the finance cost pretty flat period on period , which shows a lower cost of debt for the business .

Speaker #2: That's that 70% movement. Thank you.

Speaker #1: Thanks, Roelof. Okay, Andre, question from Andre at 91. A networking capital change of approximately 28 million dollars in just 6 months. Is a rather large outflow.

Speaker #1: Are you expecting the payables to normalize in H2? By how much of the networking capital are you expecting to recoup? And the revenue growth in H2 also looks large.

Speaker #2: If we look at the waterfall on the cash flow, much lower cash was generated for this period compared to previous periods. As mentioned, this is mostly due to the increase in our working capital cycle. Only $4 million was spent on CapEx.

Speaker #1: What do you think will be the impact on the net capital going forward beyond 2026?

André van Deventer: But we have always mentioned that we are not a company that will be highly geared, so the return on equity will not ever shoot the lights out. So I think we are quite happy with the 14% that we have there. Return on capital marginally up to 15.3%. As mentioned on the working capital days, heading towards 100 days. So we believe we can get back to the 81 days that we were at 2025. A lot of hard work to do on that number. Pretty much like the Springboks will need to do this week before their next test against the All Blacks. Then just the gearing up by 6%. I think the good thing about that is even with the debt going up by 6%, we managed to keep the finance cost pretty flat period on period, which shows a lower cost of debt for the business.

Speaker #2: Thanks for that, Andrew. I wanted to say don't record this. But I don't have an option. Yeah, I think what we've seen in the first half obviously also nice growth in revenue.

Speaker #2: And that's just we we get a lot of questions on , you know , what levers do we have if we are working capital blows out of it or we don't perform as we supposed to .

Speaker #2: And you're right. If we look at our order book into second half, we should have good revenue growth. I think a couple of things what we're doing contractually now.

Speaker #2: But I think that's a good thing. On the CapEx, we've always got that lever where we can cut back on capital spend and be responsible with our spend on CapEx during the period.

Speaker #2: We do we are a bit more aggressive on payment terms with our clients. Some upfront payments especially we capital is required that we're building into our conversations with the clients.

Speaker #2: Also , we we had to pay back $11 million of debt to our , our lenders . And then we also did a drawdown of $18 million .

Speaker #2: So that's one thing that we're looking at doing. I think the second one like I mentioned that had a negative effect on the working capital was the commercial not claims.

Speaker #2: Most of that is being used to fund the working capital cycle. Sufficient cash is left at the end of the year to fund our strategic growth.

André van Deventer: If we look at the waterfall on the cash flow, much lower cash generated for this period compared to previous periods. As mentioned, mostly due to the increase in our working capital cycle. Only $4 million spent on CapEx. We get a lot of questions on what levers do we have if our working capital blows out a bit or we do not perform as we are supposed to. But I think that is a good thing on the CapEx. We always got that lever where we can cut back on capital spend, and be responsible on our spend on CapEx. During the period also, we had to pay back $11 million of debt to our lenders, and then we also did a drawdown of $18 million. Most of that being used to fund the working capital cycle. Sufficient cash left end of the year to fund our strategic growth.

Speaker #2: The amendments to contracts which I believe is now sorted out into the second half of the year. So even with higher revenue, you won't have to wait for amendments to amendments to be approved to invoice those revenue.

Speaker #2: And just on the , on the capital spend for the period , only $4.3 million spent for this period , the biggest portion was our maintenance capital , 56% of that on the expansion , most of it was spent on the assets , under construction is currently still five machines under construction and on the shelf .

Speaker #2: And to recover that. So I think on the revenue line that's what we need to do. On the payables, I think that will normalize back as mentioned it was.

Speaker #2: But of a once-off settlement to clear some of the balances for the ERP take on. So I think on the payables, it should normalize.

Speaker #2: Boring system capital spent there . We have $6 million committed in CapEx for second half of the year . And just after the half year finished , we actually got a very nice contract out of Australia , which we need to to procure new equipment for which we don't have in the fleet .

Speaker #2: I think on the inventory, we're pretty flat. That was more on currency movement. But I think the hard work for Russia and the men for this period is to work on that recoveries from the clients.

Speaker #2: So that will increase the capital spend . Also also a bit . That's it from my side . Donnie , I think you can do the close

Speaker #2: And make the mechanics in the contracts to have more upfront payments from the clients.

Speaker #1: Okay, thank you, Andre. Okay, that was the last question so that concludes our presentation for the day. Thank you for everybody and we look forward to speak to you again in 8 months.

André van Deventer: And just on the capital spend for the period, only USD 4.3 million spent for this period. The biggest portion was our maintenance capital, 56% of that. On the expansion, most of it was spent on the assets under construction. There are currently five machines under construction and on the Shaft Boring System capital spent there. We have USD 6 million committed in CapEx for H2 of the year. Just after the half year finished, we actually got a very nice contract out of Australia, which we need to procure new equipment for, which we don't have in the fleet. So that will increase the capital spend also a bit. That's it from my side. Danie, I think you can do the close.

Speaker #3: Thank you, Andrei. We should probably see a sharp increase in share price after your presentation. So maybe there are three takeaways.

Speaker #3: Just to wrap up, in conclusion on the presentation, I think, one, the company, I believe, is well established now for the past 40 years. Building blocks are probably well intact.

Speaker #3: Well diversified . And I think we should leverage the the footprint of the business given the experience and client base . Two , I do believe that mechanical cutting will be key to this business revenue line .

Speaker #3: And I really think the returns that we should generate from mechanical cutting will probably move the needle for our business going forward. And then lastly, maybe the model that we followed back in the day and up to today, to do everything in-house, I think we will probably follow some sort of a hybrid model where we would lean probably more towards the so-called leading OEMs in the world, with a specific focus on speed.

Danie Pretorius: Thank you, André. We should probably see a sharp increase in share price after your presentation. So maybe the three takeaways, just to wrap up in conclusion on the presentation. I think, one, the company is, I believe, well-established now for the past 40 years. Building blocks probably well intact, well-diversified, and I think we should leverage the footprint of the business given the experience and client base. Two, I do believe that mechanical cutting will be key to this business revenue line, and I really think the returns that we should generate from mechanical cutting would probably move the needle for our business going forward.

Speaker #3: And then, obviously, execution. So, on a high level, this is probably what you would see in the short to medium term, playing out from our end.

Speaker #3: And any questions from your side, Willem?

Speaker #4: Okay. Antonio, the first question coming in here is about the exciting mechanical cutting technology that Love spoke about earlier in the presentation.

Speaker #4: Do you see the group benefiting from this in the near future? And by what?

Speaker #3: I think as we speak , the empty b as we speak is generating some revenues , which I think André alluded to , and I would like to think in the next 2 or 3 years , we should probably see more of those machines somewhere in the world operating .

Speaker #3: I think the shaft voting system , probably in the medium term , I think important is that the sharp , boring system , a shaft , boring machine today is available .

Danie Pretorius: Then lastly, maybe the model that we followed back in the day and up to today to do everything in-house, I think we will probably follow some sort of a hybrid model where we would lean probably more towards the so-called leading OEMs in the world with a specific focus on speed and then obviously execution. So on a high level, this is probably what you would see in the short, medium-term playing out from our end. Any questions from your side, Willem?

Speaker #3: Again , what I said earlier on that system is available and probably in a 12 month period . If you place the order today , it could be probably somewhere in the world .

Speaker #3: You know , being deployed and by the way , those are voting systems are nine meter shaft borer will probably generate 50% of the current revenues of the current business .

Speaker #3: So just to contextualize that, is there anything else for them?

[Company Representative] (Master Drilling Group): Okay. Danie, the first question coming in here is, with the exciting mechanical cutting technology Roelof spoke about earlier in the presentation, do you see the group benefit from this in the near future, and by what?

Willem Ligthelm: Okay. Danie, the first question coming in here is, with the exciting mechanical cutting technology Roelof spoke about earlier in the presentation, do you see the group benefit from this in the near future, and by what?

Speaker #4: For all , and it relates to the pipeline with the significant increase in the pipeline and the order book , how many new race rigs do you expect to build to achieve this pipeline ?

Danie Pretorius: I think as we speak, the MTB, as we speak, is generating some revenues, which I think André alluded to. I would like to think in the next 2, 3 years, we should probably see more of those machines somewhere in the world operating. I think the Shaft Boring System, probably in the medium term. I think important is that the Shaft Boring System or shaft boring machine today is available. Again, what I said earlier on, that system is available and probably in a 12-month period, if you place order today, it could be probably somewhere in the world being deployed. By the way, those Shaft Boring Systems, a 9-meter shaft borer will probably generate 50% of the current revenues of the current business. Just to contextualize that.

Speaker #4: In the short to medium term?

Speaker #1: Thank you . William . That's an interesting question . Yes , we see very positive signals in our pipeline and that pipeline growth is coming from across the group .

Speaker #1: All the regions where we see growth in that pipeline are also the same in our order book in terms of the machines to be built.

Speaker #1: That is something that we're monitoring very carefully. The great thing about our business is that we are vertically integrated, so we can react very quickly to bring these machines online.

Speaker #1: Anything from six months to nine months . So we have that ability to react as we speak . There's a few rigs , which is on the construction as we speak , which will come on later this year .

Speaker #1: And we will keep on monitoring that. And when we deem fit, regarding that requirement, we will evaluate the returns and build machines.

André van Deventer: Anything else, Willem?

[Company Representative] (Master Drilling Group): Next question is for Roelof, and it relates to the pipeline. With a significant increase in the pipeline and the order book, how many new raise-bore rigs do you expect to build to achieve this pipeline in the short to medium term?

Willem Ligthelm: Next question is for Roelof, and it relates to the pipeline. With a significant increase in the pipeline and the order book, how many new raise-bore rigs do you expect to build to achieve this pipeline in the short to medium term?

Speaker #1: Thank you .

Speaker #4: Another one is the increase in the revenue from 16% to 28% in the rest of the world. Do you see that as sustainable, or was it a once-off contract or something similar that happened during the six months?

Roelof Swanepoel: Thank you, Willem. That's an interesting question. Yes, we see very positive signals in our pipeline, and that pipeline growth is coming from across the group. All the regions we see growth in that pipeline, also the same in our order book. In terms of the machines to be built, that is something that we're monitoring very carefully. The great thing about our business that we vertically integrated, we can react very quickly to bring these machines online, anything from 6 months to 9 months. So we have that ability to react. As we speak, there's a few rigs which is under construction as we speak, which will come on later this year, and we will keep on monitoring that. When we deem fit that requirement, we will evaluate the returns and build machines. Thank you.

Speaker #4: ?

Speaker #1: I don't think it's necessarily a once-off; the growth that we're seeing is across all the regions, specifically in the rest of the world.

Speaker #1: Our European business was really performing well for the first half compared to the same period in 2025. Also, our India business is seeing good contributions coming in.

Speaker #1: And, you know, adding one or two additional regions to the rest of the world also needs to be considered in those numbers.

Speaker #1: But we believe positive signals, and we see good growth coming from the Rest of the World segment.

Speaker #4: The last point on revenue is that the increase in revenue amounted to a record high, which comes out to 17%. What is the main breakdown?

Speaker #4: Drivers behind this growth ?

Speaker #1: I think Andre had a very nice waterfall slide explaining that 17% , but maybe just to re-emphasize 1 or 2 things , there , I think the the big one of the big drivers were the MTBE that's in production now .

[Company Representative] (Master Drilling Group): Another one is the increase in the revenue from 16% to 28% in the rest of the world. Do you see that sustainable, or was it a once-off contract or something similar that happened during this 6 months?

Willem Ligthelm: Another one is the increase in the revenue from 16% to 28% in the rest of the world. Do you see that sustainable, or was it a once-off contract or something similar that happened during this 6 months?

Speaker #1: I think that's about 5 or $6 million , if I could remember . I think the currency had a huge impact with , you know , the big rand base that we had in South Africa on the I think the call it industrial products in the presentation that and our business .

Roelof Swanepoel: I don't think it's necessarily a once-off. The growth that we're seeing is across all the regions, specifically in the rest of the world. Our European business was really performing well for the H1 compared to the same period in 2025. Also India business, good contributions coming. Adding one or two additional regions to the rest of the world also needs to be considered in those numbers. But we believe positive signals, and we see good growth coming from the rest of the world segment.

Speaker #1: Another five , $6 million contributed . There . And then finally fleet mixers , which was a small contribution . That's that 17% movement .

Speaker #1: Thank you .

Speaker #4: Thanks a lot . Okay , Andre , question from Andrew . At 91 net working capital change of approximately $28 million in just six months is a rather large outflow .

Speaker #4: Are you expecting the payables to normalize in H2? By how much of the net working capital are you expecting to recoup? And the revenue growth in H2 also looks large?

[Company Representative] (Master Drilling Group): Last one on the revenue is, the increase in the revenue amounted to a record high, which amounted to 17%. What is the main breakdown drivers behind this growth?

Willem Ligthelm: Last one on the revenue is, the increase in the revenue amounted to a record high, which amounted to 17%. What is the main breakdown drivers behind this growth?

Speaker #4: What do you think will be the impact on net capital going forward, beyond 2026?

Roelof Swanepoel: I think André had a very nice waterfall slide explaining that 17%, but maybe just to reemphasize one or two things there. I think one of the big drivers were the MTB that's in production now. I think that's about $5 or $6 million, if I could remember. I think the currency had a huge impact with the big ZAR base that we had in South Africa, I think they call it industrial products in the presentation, that A&R Group business, another $5 or $6 million contributed there. Then finally, fleet mixes, which was a small contribution. That's that 17% movement. Thank you.

Speaker #2: Thanks for that , Andrew . I wanted to say don't record this , but I don't have an option . I think what we what we've seen in the first half , obviously also nice growth in revenue and , and , and you're right , if we look at our order book in the second half should have good revenue growth , I think a couple of things .

Speaker #2: What we're doing contractually now is we are a bit more aggressive on payment terms with clients, and some upfront payments, especially where capital is required, that we're building into our conversations with the clients.

Speaker #2: So that's one thing that we're looking at doing . I think the second one , like I mentioned , that had a negative effect on the working capital , was the commercial , not claims .

[Company Representative] (Master Drilling Group): Thanks, Roelof. Andre, question from Andrew at Ninety One. A net working capital change of approximately USD 28 million in just six months is a rather large outflow. Are you expecting the payables to normalize in H2? By how much of the net working capital are you expecting to recoup? The revenue growth in H2 also looks large. What do you think will be the impact on the net capital going forward beyond 2026?

Willem Ligthelm: Thanks, Roelof. Andre, question from Andrew at Ninety One. A net working capital change of approximately USD 28 million in just six months is a rather large outflow. Are you expecting the payables to normalize in H2? By how much of the net working capital are you expecting to recoup? The revenue growth in H2 also looks large. What do you think will be the impact on the net capital going forward beyond 2026?

Speaker #2: The amendments to contracts , which which I believe is now sorted out into the second half of the year . So even with higher revenue , you won't have to wait for amendments to be approved to invoice those revenue .

Speaker #2: And , and to recover that . So I think on the revenue line , that's that's what we need to do on the payables .

André van Deventer: Thanks for that, Andrew. I wanted to say don't record this, but I don't have an option. I think what we've seen in the first half, obviously, also nice growth in revenue and you're right. If we look at our order book into second half, we should have good revenue growth. I think a couple of things, what we're doing contractually now, we are a bit more aggressive on payment terms with our clients, some upfront payments, especially where capital is required that we're building into our conversations with the clients. That's one thing that we're looking at doing. I think the second one, like I mentioned, that had a negative effect on the working capital was the amendments to contracts, which I believe is now sorted out into the second half of the year.

Speaker #2: I think that will normalize . As mentioned , it was better for once of settlement to to clear some of some of the balances for the ERP .

Speaker #2: So I think on the payables , it should normalize , I think on the inventory , we're pretty flat . That was more on currency movement .

Speaker #2: But I think the hard work for Russia and the men for this period is to work on that recovery from the clients, and make the mechanics in the contracts so they have more upfront payments from the clients.

Speaker #4: Okay . Thank you . Andre . Okay . That was the last question . So that concludes our presentation for today . Thank you for everybody .

André van Deventer: Even with higher revenue, you won't have to wait for amendments to be approved to invoice those revenue and to recover that. I think on the revenue line, that's what we need to do. On the payables, I think that will normalize back. As mentioned, it was a bit of a once-off settlement to clear some of the balances for the ERP take-on. I think on the payables, it should normalize. I think on the inventory, we're pretty flat. That was more on currency movement. I think the hard work for Russia and the men for this period is to work on that, to recoveries from the clients and make the mechanics in the contracts to have more upfront payments from the clients.

[Company Representative] (Master Drilling Group): Okay. Thank you, Andre. That was the last question, so that concludes our presentation for the day. Thank you for everybody, and we look forward to speak to you again in eight months.

Willem Ligthelm: Okay. Thank you, Andre. That was the last question, so that concludes our presentation for the day. Thank you for everybody, and we look forward to speak to you again in eight months.